The Australian-themed casual eating chain Outback Steakhouse isn’t proof against the headwinds going through the restaurant industry. Its determine agency, Bloomin’ Brands Inc., has announced the abrupt closure of 21 restaurants across the U.S. during October, signalling the start of a primary overhaul.
These closures are a part of a broader “complete turnaround method” that Bloomin’ Brands says will include an additional ~22 closures as leases expire over the subsequent four years.
Why the Closures
Blooming Brands says numerous factors led to the choice:
- Underperforming eating places: some places were now not generating enough income or foot site visitors.
- Rising working costs: exertions, hire, deliver-chain and meals inflation are squeezing informal dining chains.
- Competitive strain: Rival chains like Texas Roadhouse, LongHorn Steakhouse and other fee-orientated restaurants are gaining floor.
- Strategic redevelopment: The agency intends to reinvest in fewer, stronger locations instead of spreading sources over many underperforming units.
In its filing, Bloomin’ Brands suggested taking a $33 million goodwill impairment charge tied to the closures, at the side of an envisioned $5-7 million in severance and shutdown costs.
Where the Closures Are Happening
The shutdowns span several states; local reports identified closures in at least six states: Alabama, Florida, Louisiana, Maryland, New York and Wisconsin. Some of the sites that closed include:
- Birmingham, Alabama — 20th Street North at 20 Midtown & Inverness on U.S. 280
- Jacksonville Beach, Florida — 3760 S 3rd Street
- Naples, Florida — 4910 U.S. 41 North
- Baton Rouge, Louisiana — Jones Creek Boulevard
- Silver Spring, Maryland — Ellsworth Place Mall
- Madison, Wisconsin — 4520 E Towne Boulevard
What This Means for Customers & Employees
For Customers
- Fans of the brand in affected regions may find their local Outback is now gone—or may be replaced by another concept or closed entirely.
- The brand is saying it will remodel remaining locations by 2028, with improved design, fewer tables per server, and stronger customer experience.
- While the closures may be a disturbance to patrons, they may also signal a better experience in the future if the strategy succeeds.
For Employees
- Employees at impacted restaurants are being offered transfer options to other nearby locations when possible.
- A transition bonus is reportedly in place for employees in the closed units.
- However, the suddenness of some closures has sparked criticism about short-notice job losses. One employee in Wisconsin stated they were told a location would reopen, and 12 hours later it was closed with no jobs.
What This Means for Outback
Outback Steakhouse remains a recognizable brand—the chain has been around since 1988, headquartered in Tampa, Florida. However, the brand is clearly under pressure:
- The company acknowledges the need to modernise: smaller kitchens, enhanced pick-up areas, brighter interiors.
- The strategy suggests a shift from broad expansion to consolidation and quality improvement.
- If successful, the chain could emerge with fewer locations but stronger performance per store; if not, the downward trend may continue.
Risks & Challenges Ahead
- Even after closures and reinvestment, customer traffic must improve sustainably—not just for one or two quarters but for the long term.
- With competitors posting same-store sales growth (Texas Roadhouse +5.8%, LongHorn +5.5% last quarter in one report) Outback will need to raise its performance to match.
- The brand’s promise to remodel and improve service is costly and takes time; execution risk is significant.
- Customers may associate closures with decline, which can hurt brand perception unless the turnaround is clearly communicated and delivered.
Conclusion
The sudden closure of 21 locations via Bloomin’ Brands, the parent of Outback Steakhouse, marks a great second within the informal-eating zone. It’s a clear sign that even lengthy-standing, excessive-visibility chains have to adapt speedy to converting customer behaviours, heavier fee burdens and stiff competition. For Outback Steakhouse, this isn’t just about shuttering underperforming devices—it’s approximately remodeling the business model.
While the brand still has fee, the query now could be whether or not it could effectively execute the turnaround: streamline operations, reinvest in visitor revel in, and reignite boom in an era wherein customers have extra alternatives than ever. The restructuring risks are real—however so are the opportunities for folks that navigate the exchange accurately.